The Government of Kenya through the Ministry of Energy & Petroleum has inked a deal with Indian firm Adani Holdings Limited.
Energy Cabinet Secretary Opiyo Wandayi in a statement on Friday, October 11, announced that the Kenya Electricity Transmission Company Limited (KETRACO) and Adani’s subsidiary-Adani Energy Solutions Limited have signed a Ksh95.68 billion Project Agreement.
Wandayi said the signing of this agreement marks the conclusion of a long-negotiated process that has been ongoing.
The CS highlighted that KETRACO conducted comprehensive due diligence on Adani Energy Solutions as the project proponent, along with thorough stakeholder engagement, before signing the agreement.
According to Wandayi, this ensures that all concerns have been addressed and the project is primed for successful execution.
He further said the agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.
“I am pleased to announce the successful signing of the Project Agreement between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited (the Project Company) on Wednesday 9th October 2024,” the statement reads in part.
“The signing of this agreement marks the conclusion of a long-negotiated process that has been ongoing for the past 4 months.”
Wandayi has announced that Adani Energy Solutions will raise all the funding in the form of debt and equity that will be repaid over the 30- year period of the project agreement, as part of this infrastructure development.
Details of the project
In addition, the project cost that is currently estimated at Ksh95.68 billion ($736m) will be crystallized through a competitive bidding process.
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The CS highlighted that the process will be jointly handled by KETRACO and Adani Energy Solutions, thus ensuring significant value for money for the country.
He further maintained that the Government will not incur any financial expenditure for this project.
“The competitive bidding process will prioritize local content and ensure that we prioritize business opportunities for Kenyans.
The country will benefit from world-class energy infrastructure ensuring value for money, further demonstrating the government’s commitment to prudent fiscal management,” added Wandayi.
According to the CS, Adani Energy Solutions will manage the transmission line for 30 years, to ensure long-term sustainability and efficiency, and thereafter transfer the project and all its assets to KETRACO.
Transmission Lines and Substations Being Developed by Adani:
400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line: Spanning 208.73 km, this line will incude new substations at Gilgil, Thika, and Malaa, as well as substantial extensions at Konza.
220kV Rongai-Keringet-Chemosit Line: Covering 99.98 km, this line will include substations at Rongai, Keringet, and Chemosit.
132kV Menengai-Ol Kalou-Rumuruti Line: An 89.88 km line with substations at Menengai, Ol Kalou, and Rumuruti.
400/220kV Substation at Lessos: Critical for supporting the 400KV transmission network and enhancing regional power stability.
132/33kV Substation at Thurdibuoro: Expanding the local distribution grid, providing much-needed power to Central and Southern Nyanza regions.
At the same time, CS Wandayi has revealed that KETRACO is in engagement with a consortium of Africa 50 and Power Grid of India on other projects.
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The projects include:
Lessos-Loosuk 400Kv line and associated substations.
Kibos-Kakamega-Musaga 220kv line and associated substations.
Other Public Private Partnerships (PPP) Projects that are also lined up include:
Kisumu Bonda-Rangala Busia-Nyaga 132kV line and associated substations
Kitale-Tongaren-Webuye-Musaga 132kV line and associated substations
Githambo-Othaya-Kiganjo 132kV line and associated substations
Meru-Maua 132kV line and associated substations
Wandayi said that up-to-date progress on these set of projects will be released to the public in due course.
The government has maintained that the Adani project is aligned with its objective of expanding access to electricity across the country, minimize transmission losses and address blackouts.
Additionally, this project is set to facilitate Vision 2030, Kenya’s long-term development plan to transition into a middle-income, industrialized nation.
By enhancing electricity transmission capacity, the Government has necessitated that it aims to support industrial growth and improve regional integration, ensuring stable and reliable power for industries and households across the country.
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